A variety of stimulated nonlinear optical processes are observed under
relatively low intensity cw excitation in droplet spherical microcavi
ties. These include stimulated Raman and Rayleigh-wing scattering as w
ell as four-wave parametric oscillation. The low thresholds for these
stimulated processes are accounted for by all waves being in resonance
with high-Q droplet modes and by the existence of a significant cavit
y QED enhancement (> 100 times) in the nonlinear gain coefficients.